They will be back with a bang in 2013 as they have to put their money somewhere and it is only the stock market the best bet.Besides it is public money so they will not loose anything it is the retail invester to loose if ever it happens. Right now they have to improve the bottom line so have sold.
Domestic funds had to sell due to redemption demands. As the demand for funds from the public remains high due to inflation, redemptions will continue. Hence the net sell by Domestic Funds will also continue.